The US Senate is moving to maintain sanctions on the Gazprom-owned Nord Stream 2 pipeline when they expire at the end of 2024. The US Senate must also push for and expand sanctions on the Nord Stream pipeline to strengthen Ukraine's security and increase Europe's energy independence, according to Alan Riley, a scholar at the Atlantic Council.
In 2020, the US enacted the Protecting European Energy Security Act (PEESA), which imposes sanctions on foreign parties that provide vessels or ancillary services in the construction of the Nord Stream 2, TurkStream, or any of their successor projects to create new routes for Russian gas to the European Union (EU).
The Nord Stream 2 pipeline is designed to deliver an additional 55 billion cubic meters of Russian gas per year across the Baltic Sea to Germany.
In September 2022, explosions destroyed two branches of the Nord Stream pipeline, each carrying 27.5 billion cubic meters of Russian gas to Germany before the conflict broke out in Ukraine. One branch of the Nord Stream 2 pipeline was destroyed in the explosion, while the other remained intact.
According to scholar Alan Riley, PEESA needs to be extended to prevent any Nord Stream pipeline from being put into operation. In addition to imposing sanctions on activities supporting the “construction” of Nord Stream 2, the word “or reconstruction” should be added to apply sanctions to repairs to the pipeline.
This writer believes that PEESA should also be extended to Nord Stream as it is clear that both branches of the pipeline need to be repaired before returning to operation.
The Atlantic Council writer also pointed out that extending PEESA to Nord Stream would also increase Ukraine’s security. This move would prevent Russia from implementing gas deals in Western Europe that would isolate Ukraine from Russia’s economic and military power.
Instead, Ukraine would gain leverage: Most of Russia’s gas exports to the EU would have to pass through Ukraine. This would give Kiev greater bargaining power with Moscow and open up the prospect of effectively taxing Russian gas to pay for reconstruction, thereby reducing the cost to the West of rebuilding Ukraine.
Kiev is currently reluctant to renew its contract to transport Russian gas through the country when it expires at the end of December. However, after the conflict ends, the flows could give Ukraine bargaining power and a source of revenue to compensate.
On the other hand, Nord Stream not being covered by PEESA sanctions would undermine Europe's energy security by making Europe dependent on Russian gas.
By February 2022, the EU imported 45% of its gas from Russia – 55% in Germany alone. Extending PEESA to Nord Stream would encourage further diversification and make Europe less likely to become dependent on Russian energy again.
